Phasing out the penny

The Government of Canada will be phasing out the penny as of Monday, February 4th, 2013. Please refer to their website for more information: www.fin.gc.ca

The Royal Canadian Mint will no longer distribute pennies and businesses are encouraged to begin rounding cash transactions. Only cash transactions require rounding, all other payment means – debit or credit card, cheque – do not need to be rounded because they will be settled electronically to the exact amount. For all cash transactions, these are the federal government’s rounding guidelines:

  • Amounts ending in 1 cent and 2 cents are rounded down to the nearest 10 cents
  • Amounts ending in 3 cents and 4 cents are rounded up to the nearest 5 cents
  • Amounts ending in 6 cents and 7 cents are rounded down to the nearest 5 cents
  • Amounts ending in 8 cents and 9 cents are rounded up to the nearest 10 cents
  • Amounts ending in 0 cents and 5 cents remain unchanged

Businesses can continue to use the penny in cash transaction but as of Feb. 4 all financial institutions will no longer be able to issue the penny to their customers.

More information:
http://www.cra-arc.gc.ca/gncy/bdgt/2012/cngsystm-eng.html

CBC Obituary and penny FAQ

Comments

Phasing out the penny — 1 Comment

  1. Most consumers will not notice a change as businesses will still continue to receive and give pennies. By the time all pennies have disappeared, prices will have rounded to the nearest nickle. Businesses just need to remember they can not go to their Bank and get rolls of pennies.